North Carolina Down Payment Support Systems

Online Payments - The North Carolina Housing Finance Agency got two amazing plans for First Time Home Buyers. These programs are the Down Payment Assistance Program along with the Mortgage Credit Certificate.

You buy a property between January 1, 2009 and December 1, 2009 and should you qualify for one of these programs, you may also qualify for the $8,000 tax credit just enacted into law.

First, who's a first-time Home Buyer? A first-time Home Buyer is someone who has not owned a home within the past three years. That is exactly the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with low and average incomes. The MCC takes this a step further.

You can claim 20% of the interest you pay on your mortgage as a credit in your federal income taxes in case you are eligible for the MCC. You are able to save as much as .

If you do qualify for the MCC you'll manage to unite this. This may reduce the tax liability of a buyer's by $10,000.

Household income means the “gross income of the mortgagor and any man anticipated to live in the residence who is 18 years of age or older.”

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limitations 1 Man $61,500 2 Men $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Cost Limitations New House $220,000 Existing House $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their down payment and closing prices might be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The purchaser just has to pay $1,000 of their own funds and the load would pay around $8,000 of the remaining balance.

This plan has more rigorous income limits than the MCC plan summarized above. Like the MCC program, it could be used in combination with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment assistance, however, cannot be employed along with all the MCC. That is an either or scenario.

The income and house price limits that apply in Durham, Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limitations

1 Person $39,950 2 Individuals $45,650 3 Persons $51,350 4 Persons $57,050

Down Payment Assistance Sales Price Limits New Home $210,000 Existing Home $210,000